Kesem Energy has signed a $2 billion gas supply agreement with Energean plc (LSE: ENOG; TASE: ENOG) over 17 years from the Karish-Tanin gas fields and a $700-800 million agreement with the Tamar partners until 2035. Kesem Energy will build a power plant at the Kesem junction on land belonging to Kibbutz Ein Hashlosha. The power plant is scheduled to begin operating in 2029.
When operational in 2029, Kesem will be the only major power station in the Sharon region, and will be operated with natural gas. The agreement with Energean is for the supply of 1 billion cubic meters (BCM) per year. Since Energean was unable to supply all of the Kesem power plant's needs, the company was forced to sign an additional contract until 2035 for gas for 0.8 BCM per year from the Tamar field operated by Chevron. From 2035, Kesem will buy all its gas needs from Energean in a deal expected to extend until 2046.
Energean CEO Mathios Rigas said, "We are pleased to announce the signing of another new contract, this time with Kesem, whose new planned power plant demonstrates the robust and growing long-term demand for natural gas in Israel. Energean has been a major underwriter of both energy security and transition in Israel and the broader region. We are delighted to continue to meet the needs of Israeli clients and society. This contract also reflects our long-stated commitment to securing stable and reliable long-term cash flows. We have now secured around $20 billion in contracted revenues over the next two decades."
Chevron Eastern Mediterranean Business Unit managing director Jeff Ewing said, "The signing of the new contract with Kesem Energy reflects Chevron's commitment to meeting the growing demand for natural gas in Israel, alongside continued exports to neighboring countries and the supply of more reliable and cleaner energy to the region and the world. Chevron has significant and important operations in the Eastern Mediterranean, an area that is a central part of our future and a high priority area for us."
Published by Globes, Israel business news - en.globes.co.il - on April 15, 2025.
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